Canada’s central bank flooded real estate markets with cheap cash when the pandemic hit, and we may know why. Hilliard MacBeth, a prominent Canadian wealth manager, released a research note for clients last week. In his post, he dissects a Bank of Canada (BoC) staff research note from 2019, testing the resilience of the banking […]
Canadian real estate sales are hitting record levels, but mortgage growth is slowing. Bank of Canada (BoC) data shows outstanding mortgage credit hit a new all-time high in July. Even with the new high and various factors working in its favor, the rate of growth is still decelerating. Mortgage Debt Reached Over $1.69 Trillion In […]
Canadian banks are going to make it a little more difficult to get a break from your mortgage. Office of the Superintendent of Financial Institutions (OSFI) announced they will begin phasing out special treatment of payment deferrals. Previously, due to the pandemic, the regulator had allowed banks to avoid classifying payment deferrals as non-performing loans. […]
Canadian banks are setting aside a lot more cash for bad loans, despite a number of government programs to help households. The “Big Six” reported Q3 financial results, and a common theme was an increase in provisions for credit losses (PCLs) from last year. The amount of cash banks have set aside for bad loans […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Bank Of Canada’s Mortgage Buying Is A Quarter The Size Of New Mortgage Credit Canada’s central bank kicked into action during the pandemic… by flooding the mortgage market with cheap cash. The central bank held $513 million worth of CMBs in […]
Canada’s real estate industry has seen a smaller impact than the general economy during the pandemic. Statistics Canada (Stat Can) data shows residential investment fell in Q2 2020. The drop was smaller than the one GDP made though, meaning the economic dependency on real estate grew. At least for the next few months. Residential Investment […]
Canada’s real estate markets have seen prices soar, but condos are getting left behind. Canadian Real Estate Association (CREA) data shows only five major markets saw condo prices hit a new peak in July. Over two-thirds of Canada’s major markets haven’t seen a peak since the beginning of the pandemic. Some markets last saw prices […]
Canada’s largest bank sees the immigration slump lasting a few years. RBC economists crunched the numbers, and saw a huge decline in the number of new permanent resident arrivals. In addition to the decline in arrivals, they also note a big drop in new applications. Since applications take months to process, the bank is seeing […]
Canada’s central bank is using billions to flood the mortgage market with cheap money. It hasn’t been very effective, considering the scale of the purchase. Bank of Canada (BoC) data shows a big mortgage bond buying spree since the beginning of the pandemic. The dollar value of the bond buying was known, but we’re only […]
Canada’s largest real estate markets partially attribute fast climbing prices to immigration. However, with a significant decline in permanent residents, prices have yet to slow down. Government of Canada (GoC) data shows new permanent residents admitted to major markets dropped in June. The decline was most notable in Toronto and Montreal, where numbers are down […]
